Correlation Between Peerapat Technology and Master Ad
Can any of the company-specific risk be diversified away by investing in both Peerapat Technology and Master Ad at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Peerapat Technology and Master Ad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peerapat Technology Public and Master Ad Public, you can compare the effects of market volatilities on Peerapat Technology and Master Ad and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Peerapat Technology with a short position of Master Ad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peerapat Technology and Master Ad.
Diversification Opportunities for Peerapat Technology and Master Ad
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peerapat and Master is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Peerapat Technology Public and Master Ad Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Master Ad Public and Peerapat Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Peerapat Technology Public are associated (or correlated) with Master Ad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Master Ad Public has no effect on the direction of Peerapat Technology i.e., Peerapat Technology and Master Ad go up and down completely randomly.
Pair Corralation between Peerapat Technology and Master Ad
Assuming the 90 days trading horizon Peerapat Technology Public is expected to under-perform the Master Ad. In addition to that, Peerapat Technology is 1.09 times more volatile than Master Ad Public. It trades about -0.27 of its total potential returns per unit of risk. Master Ad Public is currently generating about -0.13 per unit of volatility. If you would invest 103.00 in Master Ad Public on November 29, 2024 and sell it today you would lose (7.00) from holding Master Ad Public or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peerapat Technology Public vs. Master Ad Public
Performance |
| Timeline |
| Peerapat Technology |
| Master Ad Public |
Peerapat Technology and Master Ad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peerapat Technology and Master Ad
The main advantage of trading using opposite Peerapat Technology and Master Ad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peerapat Technology position performs unexpectedly, Master Ad can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Master Ad will offset losses from the drop in Master Ad's long position.| Peerapat Technology vs. Megachem Public | Peerapat Technology vs. M Vision Public | Peerapat Technology vs. NCL International Logistics | Peerapat Technology vs. Pioneer Motor Public |
| Master Ad vs. Heng Leasing Capital | Master Ad vs. Quality Hospitality Leasehold | Master Ad vs. Talaad Thai Leasehold | Master Ad vs. Bhiraj Office Leasehold |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |